Virginia § 8.7-504 - Rights acquired in the absence of due negotiation; effect of diversion; seller's stoppage of delivery
Full text of Virginia Code of Virginia § 8.7-504 — Rights acquired in the absence of due negotiation; effect of diversion; seller's stoppage of delivery, with citation guidance and answers to common questions.
§ 8.7-504. Rights acquired in the absence of due negotiation; effect of diversion; seller's stoppage of delivery
(1) A transferee of a document, whether negotiable or nonnegotiable, to whom the document has been delivered but not duly negotiated, acquires the title and rights that his transferor had or had actual authority to convey.
(2) In the case of a nonnegotiable document, until but not after the bailee receives notification of the transfer, the rights of the transferee may be defeated:
(a) by those creditors of the transferor who could treat the sale as void under § 8.2-402 or § 8.2A-308; or
(b) by a buyer from the transferor in ordinary course of business if the bailee has delivered the goods to the buyer or received notification of his rights; or
(c) by a lessee from the transferor in ordinary course of business if the bailee has delivered the goods to the lessee or received notification of the lessee's rights; or
(d) as against the bailee by good faith dealings of the bailee with the transferor.
(3) A diversion or other change of shipping instructions by the consignor in a nonnegotiable bill of lading that causes the bailee not to deliver to the consignee defeats the consignee's title to the goods if they have been delivered to a buyer or lessee in ordinary course of business and, in any event, defeats the consignee's rights against the bailee.
(4) Delivery pursuant to a nonnegotiable document may be stopped by a seller under § 8.2-705 or a lessor under § 8.2A-526, subject to the requirement of due notification there provided. A bailee honoring the seller's or lessor's instructions is entitled to be indemnified by the seller or lessor against any resulting loss or expense.
Code 1950, §§ 61-44, 61-45; 1964, c. 219; 2004, c. 200.
Source: official Virginia text · Last verified 2026-08-27
Frequently Asked Questions About Virginia § 8.7-504
What does Code of Virginia § 8.7-504 cover?
Section 8.7-504 ("Rights acquired in the absence of due negotiation; effect of diversion; seller's stoppage of delivery") is part of the Code of Virginia, the codified statutory law of Virginia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Virginia § 8.7-504?
A common citation format is "Code of Virginia § 8.7-504" (Virginia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Virginia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Virginia official source linked on this page or consult a licensed Virginia attorney.
How does Virginia § 8.7-504 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Virginia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Virginia.